Bajaj Housing Finance on Thursday fixed the price band of its much-awaited IPO at Rs 66-70 per share. The Rs 6,560-crore initial public offering will be opened on September 9, and will conclude on September 11. The bidding for anchor investors will open for a day on September 6.
Bajaj Housing Finance: Key Dates
The Bajaj Housing Finance IPO will remain open for public subscription between September 9 and September 11. The share allotment will take place on September 12, while its listing is scheduled to take place on September 16. The anchor investors will bid on September 6.
Bajaj Housing Finance IPO Size, Quota
The proposed IPO comprises a fresh issue of equity shares of up to Rs 3,560 crore and an offer for sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.
A total of 50 per cent of the issue is reserved for qualified institutional buyers (QIB), 35 per cent for retail investors, and 15 per cent for non-institutional investors.
Bajaj Housing Finance IPO: GMP
According to market observers, unlisted shares of Bajaj Housing Finance Ltd are trading Rs 55 higher in the grey market than its issue price. The Rs 55 grey market premium or GMP means the grey market is expecting a 79.29 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Bajaj Housing Finance IPO: More Details
The share sale is being conducted to comply with the Reserve Bank of India’s (RBI’s) regulations, which require upper layer non-banking financial companies (NBFCs) to be listed on the stock exchanges by September 2025.
Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
Bajaj Housing Finance is a non-deposit taking housing finance company registered with the National Housing Bank since September 2015. It offers financial solutions for purchasing and renovating residential and commercial properties.
It has been identified and categorised as an “upper layer” NBFC by the RBI in India and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.
For the entire 2023-24, the housing lender posted a net profit of Rs 1,731 crore, marking a growth of 38 per cent from Rs 1,258 crore in FY23.
Aadhar Housing Finance and India Shelter Finance are two housing finance companies that have listed on the stock exchanges in recent months.
In June, Bajaj Housing Finance filed preliminary papers with Sebi for a Rs 7,000-crore IPO, comprising fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore by its parent. The market regulator gave its clearance to the company’s maiden public issue earlier this month.
Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd and JM Financial Ltd are the book running lead managers that will manage the company’s public issue.
